The company founded by Henry Luce said as recently as April that it wasn’t planning to sell
The publisher of Time, People and Sports Illustrated is close to a deal to be sold to another big magazine publisher, Meredith, according to a report Sunday.
Time Inc., once one of the nation’s most influential publishing powerhouses after its founding by Henry Luce in 1922, could go to Meredith, which includes Better Homes & Gardens and Shape among its titles, for $1.8 billion, the Wall Street Journal reported.
Representatives of Meredith and Time did not respond to requests for comment.
If the deal went through, it would mark finally mark success for Meredith in its third run at acquiring Time. It reportedly tried four years and then sought to bid again as recently as earlier this year.
After indicating late last year that it was willing to entertain offers, Time shut down the process in April, saying it planned to continue as an independent company. At the time, Meredith was considered a frontrunner in the bidding.
«We think there’s tremendous untapped potential,» Time CEO Rich Battista told the New York Times about why the company was turning away potential suitors. Like other media companies, Time was focusing on moving from a print focus to a multi-media approach.
Time has been reeling under the same pressures facing the rest of the magazine industry. Advertising revenue and circulation have been falling as readers move to Internet content.
For its third run at Time, Meredith, based in Des Moines, reportedly has the financial backing of Charles and David Koch, the billionaire brothers behind Kansas-based Koch Industries and known for their support of conservative political candidates and causes. It was reported that the Kochs are ready to put $500 million into the deal.
Meredith would be willing to pay from $18 to $19 a share for Time, the Journal said. On Friday, Time closed at $16.90 in trading on the New York Stock Exchange. It has traded between $9.90 and $20.40 a share over the past 52 weeks.
Though Time was reported in October to be considered cost-cutting moves, including reducing publication schedules for some of its titles, its famous titles still have clout.
President Trump tweeted last week the he wasn’t interested in being named Time magazine’s Person of the Year for the second straight year. «Thanks anyway!» he wrote on Twitter. Time magazine responded on its own account that Trump didn’t understand the selection process and several comics offered their own mocking tweets as well.
